New Powers For Treasury Proposed
Stocks gave up a little of its gain from Monday; down 116 points.
Bonds went sideways, but the Dollar strengthened – gaining back some its recent losses.
Oil and gasoline went sideways, and is establishing a new base to rise from – watch out.
Gold lost half of its recent gain. It should be interesting to follow the near term price of gold as the FED is supposed to start its purchases of long term US Treasuries in the near term – and this will be inflationary.
In the news today…..
President Obama has asked Congress to pass legislation allowing the Treasury Secretary the power to take control of entities in financial trouble, such as AIG. Today, the FDIC can take over a bank in financial trouble, but no one can take control of an insurance company – other than shareholders.
I haven’t come up with my own opinion of this idea yet. My opinion has always been that these entities need regulation – as their lack of regulation has been demonstrated to create financial meltdown – as greed rules – more profits, more profits, bigger corporation, bigger jets, looking good, keeping up with the Jones, etc. However, giving the Treasury the power to step in just could be going too far. What’s wrong with Chapter 11?
The Chinese are pushing a new international currency becoming the new reserve currency and having the IMF control it. Ignore this talk – it would be giving up sovereignty in the US. The problem is that the Obama Administration is scaring a lot of nations around the world, like Sweden, France, China, saying our spending is scaring them as it’s just too socialist. Hmmmmm.
Here are the last numbers for today:
Dow Jones 30 Industrial – 7660 (down 116 points)
10 Year Treasury Bond – 2.65% (down 0.01%)
Euro – $1.3468
Gold – $924 (down $29)
Oil – $53.98 (up $0.18)
Gasoline – $1.50 (up $0.01)
